Ecopack Limited has reported a 5 percent increase in profit after tax for the first half of fiscal year 2026, demonstrating resilience in a challenging business environment marked by softer revenues and cost pressures.
For the six months ended December 31, 2025, the company posted a profit after tax of Rs 88.37 million, up from Rs 84.20 million in the corresponding period last year. Earnings per share (EPS) improved to Rs 1.83 compared to Rs 1.74 previously, reflecting modest but steady growth in shareholder returns.
During the period, revenue from contracts with customers declined by 6.2 percent year-on-year to Rs 3.40 billion, indicating slower demand and pricing challenges across the packaging sector. Net revenue after sales tax stood at Rs 2.88 billion. Gross profit fell 7 percent to Rs 410.8 million, with slight compression in gross margins due to reduced sales volumes and cost dynamics.
Operating expenses increased, with selling and distribution costs rising by over 13 percent and administrative expenses climbing more than 16 percent year-on-year. The increase reflects inflationary pressures and higher operational spending. However, a significant decline in finance costs — down more than 44 percent — provided substantial relief to the bottom line.
As a result, profit before tax rose nearly 5 percent compared to the same period last year, supported primarily by lower borrowing costs and prudent financial management. The reduction in finance expenses highlights the company’s improved balance sheet position amid a shifting interest rate environment.
Industry analysts note that while top-line growth remains a challenge, Ecopack’s ability to safeguard profitability underscores its operational discipline and cost control strategy. Moving forward, revenue recovery and demand stabilization will be key to sustaining momentum in the second half of FY2026.
With improved earnings and controlled financial costs, Ecopack Limited continues to reinforce its position within Pakistan’s packaging industry.
